Texas Crammer Practice Exam

What is an appraiser's primary task when comparing properties?

1. Adjust the subject property to fit comparables

2. Modify the sale price of comparables

3. Assess external economic factors

4. Make adjustments to the comparables

The correct answer is: Make adjustments to the comparables

The primary task of an appraiser when comparing properties is to make adjustments to the comparables. This process involves analyzing similar properties that have recently sold (known as comparables or "comps") and adjusting their sale prices based on differences between those properties and the subject property. For example, if the subject property has additional features, like a larger lot or a renovated kitchen, the appraiser will account for these enhancements by adjusting the comparables upward in value. Conversely, if a comparable lacks certain amenities that the subject property has, the appraiser will adjust the comparable’s value downward. This adjustment process ensures that the appraiser arrives at a more accurate estimate of the subject property's market value by taking into account the variations between it and the properties used for comparison. By focusing on making these adjustments, the appraiser can recognize market trends and give a fair appraisal based on actual sales data, thereby providing a reliable valuation for buyers, sellers, and lenders.